beyond the grid: the connected consumer and the...

BEYOND THE GRID: THE CONNECTED CONSUMER AND THE SMART ENERGY FUTURE

A N N U A L R E P O R T 2 0 1 6

2 BEYOND THE GRID: THE CONNECTED CONSUMER AND THE SMART ENERGY FUTURE

Jason CigarranVice President,

Corporate Marketing and Communications

Comverge

Liz CoyleExecutive Director

Georgia Watch

Peter K. FloydPartner

Alston & Bird

Luisa FreemanSenior Principal Consultant

DNV GL

Michele GreggDirector of External Relations

Texas Office of Public Utility Counsel

Val JensenSenior Vice President, Customer Operations

ComEd

Gregory KnightSenior Vice President & Chief Customer Officer

CenterPoint Energy

Michel LosierDirector, Customer and

Community EngagementNew Brunswick Power Corporation

The Smart Gird Consumer Collaborative Board has 17 directors who represent commercial, utility and advocacy organizations along with SGCC’s President & CEO.

SGCC BOARD OF DIRECTORS

DEAR MEMBERS,2016 was a wild year on many fronts in the electricity industry.

As Distributed Energy Resources continue to expand, many utilities undertook rate redesign, including a big push for demand charges from several of them. Other utilities worked for net-metering reform, while others held back and studied NARUC’s Distributed Energy Resources Rate Design and Compensation manual, that is, by all accounts, an enormous help to the industry. Controversy and attention to rate reform occurred all last year and is expected to continue in 2017.

Among the biggest moves of the year, New York’s Reforming Energy Vision (REV) began to take shape transforming distribution utilities into platform providers for an energy market at the distribution level. REV’s potential impact on enabling consumer choice and creating an animated retail market in New York is a bellwether for what the rest of the United States might do. Understanding consumers — who they are and what they want — is key to the success of REV and rate design efforts everywhere.

In 2016, SGCC successfully completed many projects with the aim of improving our understanding of consumers in the changing energy marketplace and how to better engage them in smart energy. In the first quarter, SGCC released the annual State of the Consumer Report, which built on past research to detail what consumers are thinking about and how they are engaging with grid modernization efforts.

In May, SGCC released The Empowered Consumer, which examined how the smart grid has empowered consumers and evaluated consumer propensity to adopt and participate in a variety of smart grid-enabled programs. Special attention was given to consumer interest in time-varying rates due to the heavy industry focus on rate reform mentioned above.

Later in the year, SGCC published Consumer Driven Technologies, a study that surveyed respondents on residential solar, community solar, green power plans and electric vehicles and equips stakeholders with actionable insight on consumer-producers to help the transition to the future grid.

In addition to research, SGCC’s Education & Outreach Committee completed a number of projects aimed at growing consumer awareness about grid modernization and its associated consumer benefits. The Next Innovation Video, released in October, highlighted for consumers the importance of smart grid as the next advancement in the history of technology.

As we look back and review all of SGCC’s achievements from 2016, I hope you will agree that we’ve had a productive year as you’ll see in this Annual Report. Please join us on our journey by continuing to support our efforts.

Thank you for your enduring support, insight and expertise. We could not achieve what we do without you.

With warm regards,

Patty Durand

President and CEO

Smart Grid Consumer Collaborative

@pattydurandsgcc

Dear friends,

Following a successful 2016, we are setting ourselves up for an exciting new year at SGCC. With the energy landscape continuously changing and our members’ needs evolving, SGCC is working diligently to align our research and education efforts with industry demands.

Looking back at the past year, SGCC successfully completed many research and education projects in line with the organization’s mission. The Research Committee released the 2016 State of the Consumer Report and The Empowered Consumer in the first half of the year, and in the second half, published Consumer Driven Technologies and Customer Experience & Expectations. An overview of this research can be found herein.

The Education & Outreach Committee also had a productive year, which saw the release of The Next Innovation Video in October. This multimedia video highlighted the importance of smart grid as the next advancement in the history of technology and was shared extensively on social media.

For 2017, SGCC’s research and education agendas are again full of exciting projects. As always, I am look-ing forward to the release of the annual State of the Consumer report, an integrated report that weaves together findings from SGCC’s 2016 research program into several key themes about the current state of the smart grid consumer – and how smart grid stakeholders can better serve that consumer.

Also noteworthy is upcoming research on millennials. Because this group often exhibits different expec-tations, attitudes and behaviors from prior generations, this research will help build the foundation for understanding this group of consumers.

This third edition of SGCC’s Annual Report reflects the organization’s continued commitment to accel-erating the adoption of a consumer-friendly, consumer-safe and consumer-approved smart grid. Moving forward into 2017, I am proud of what SGCC has accomplished in the past year, and I am looking forward to serving as Board Chair during exciting time ahead.

Through collaboration, we achieve so much. Thank you for your continued support and membership.

Best regards,

SMART GRID CONSUMER COLLABORATIVE • ANNUAL REPORT 2016 3

Lisa MagnusonDirector, Customer Communications

Pacific Gas and Electric Company

Naomi Manley-CasimirDirector

Accenture Innovation Centre for Utilities

John D. McDonaldSmart Grid Business Development

Leader – North America,Global Smart Grid Strategy Group

GE Grid Solutions

Amanda StallingsUtility Specialist

Public Utilities Commission of Ohio

Kurt SweetserVice President of Alliance

Partnerships and Customer RelationsSmart Utility Systems

Chris VillarrealDirector of Policy

Minnesota Public Utilities Commission

Tim WolfDirector of Marketing, Smart Grid Solutions

Itron

Lincoln WoodProduct ManagerSouthern Company

DEAR FRIENDS, Following a successful 2016, we are setting ourselves up for an exciting new year at SGCC. With the energy landscape continuously changing and our members’ needs evolving, SGCC is working diligently to align our research and education efforts with industry demands.

Looking back at the past year, SGCC successfully completed many research and education projects in line with the organization’s mission. The Research Committee released the 2016 State of the Consumer Report and The Empowered Consumer in the first half of the year, and in the second half, published Consumer Driven Technologies and Customer Experience and Expectations. An overview of this research can be found herein.

The Education & Outreach Committee also had a productive year, which saw the release of The Next Innovation Video in October. This multimedia video highlighted the importance of smart grid as the next advancement in the history of technology and was shared extensively on social media.

For 2017, SGCC’s research and education agendas are again full of exciting projects. As always, I am looking forward to the release of the annual State of the Consumer Report, an integrated report that weaves together findings from SGCC’s 2016 research program into several key themes about the current state of the smart grid consumer — and how smart grid stakeholders can better serve that consumer.

Also noteworthy is upcoming research on millennials. Because this group often exhibits different expectations, attitudes and behaviors from prior generations, this research will help build the foundation for understanding this group of consumers.

This third edition of SGCC’s Annual Report reflects the organization’s continued commitment to accelerating the adoption of a consumer-friendly, consumer-safe and consumer-approved smart grid. Moving forward into 2017, I am proud of what SGCC has accomplished in the past year, and I am looking forward to serving as Board Chair during exciting time ahead.

Through collaboration, we achieve so much. Thank you for your continued support and membership.

Best regards,

Mark Brown

Board Chair

Smart Grid Consumer Collaborative

Senior Customer Programs Officer

Fayetteville Public Works Commission

@faypwc


OUR MISSION:To serve as a trusted source of information

for industry stakeholders seeking a broad

understanding of consumers’ views about

grid modernization, electricity delivery

and energy usage, and for consumers

seeking an understanding of the value and

experience of a modern electrical grid.


RESEARCH COMMITTEE: Members who are interested in shaping SGCC’s consumer research participate in the Research Committee to set

SGCC’s research agenda, review detailed findings and discuss the implications and presentation of those findings

to members.

EDUCATION AND OUTREACH COMMITTEE: Members work together to improve consumer awareness and understanding of modernized electrical systems

by recognizing smart grid success, expanding available resources to the industry and amplifying the smart grid

benefits message to consumers nationwide.

POLICY COMMITTEE:

Members well versed in the regulatory affairs of the energy industry join together to present SGCC’s research at

public policy forums and conferences to facilitate a dialogue with the end result of increasing support and investment

in smart grid technologies where beneficial to consumers.

MEMBERSHIP COMMITTEE: Well-connected industry representatives set benchmark goals for membership, establish a list of prospects and

make introductions in order to support the continuous, balanced growth of SGCC’s member base.

OUR VISION: Most consumers have a broad understanding about the benefits of a modern grid, and

engaged consumers are informed and have a positive experience with energy technology.

Our threefold agenda is to:

• Listen to consumers via primary consumer research

• Collaborate with stakeholders via hosted events and shared best practices

• Educate consumers via outreach and messaging toolkits

WHO WE ARE

COLLABORATIVE EFFORTS:

State of the Consumer Report

The 2016 State of the Consumer Report, an integrated analysis of what SGCC knows about smart grid consumer behavior, builds off of the findings of more than 5,000 consumer surveys as well as the U.S. Department of Energy’s Smart Grid Consumer Behavior Studies.

The report highlights six key themes that together characterize today’s smart energy consumer:

Theme 1 – Consumers are seeing the benefits of smart grid

Theme 2 – In some important aspects, the consumer of today differs from the consumer of five years ago

Theme 3 – Utilities need to show how they are acting in consumers’ best interests to increase trust

Theme 4 – SGCC’s segmentation framework provides a clear continuum of consumer engagement opportunities and approaches

Theme 5 – Consumer and industry experience indicate a path forward for smart grid-enabled pricing programs

Theme 6 – To date, nobody has figured out the secret for engaging consumers with usage data

The Empowered Consumer

In May 2016, SGCC released The Empowered Consumer, a first-of-its-kind look at how consumers in the United States are faring post American Recovery and Reinvestment Act grant funding. The Empowered Consumer explored consumers’ awareness, preferences for and interest in nine smart energy technologies and services.

The Empowered Consumer was conducted to better understand the preferences of consumers regarding a wide range of current and emerging smart grid-enabled services and technologies. The analysis revealed actionable insights for engaging consumers and explored to what extent consumers are informed and the advantages

or concerns they have about using smart energy technologies.

Two conjoint statistical analyses were conducted to provide an in-depth understanding of what consumers value in a smart thermostat program and from time-varying rate plans. This choice-based methodology simulated real-world purchasing experiences, forcing respondents to make “trade-off” decisions when evaluating features and services.

• Time-Varying Rates: Catalyzing Behavioral Changes in Electrical Usage

An in-depth analysis of consumer interest in enrolling in time-varying rate plans and utilization of consumer segmentation to assure the targeted delivery.

• Smart Thermostats: The Next Wave in Consumer Empowerment An in-depth analysis of consumers’ preferences as they relate to the development of a smart

thermostat program.


RESEARCH HIGHLIGHTS

Customer Experience and Expectations

Customer Experience and Expectations seeks to understand how grid modernization and experiences with a broad range of service providers have impacted consumers’ attitudes toward their energy provider. The research was conducted as an online survey of 2,000 respondents across the U.S., and findings were analyzed in total and across five key consumer segments, three energy user profiles and four categories of technology use.

In late 2016, SGCC conducted the Customer Experience and Expectations research to understand how grid modernization and experiences with a broad range of service providers have impacted consumers’ attitudes toward their energy provider.

This report provides insights into the implicit calculus embedded in customer interest in various products and services, each representing different value propositions. The study also probes customers on six key touchpoints with their energy provider and uncovers customer preferences and expectations on each of these interactions. Customer perceptions of best-in-class service providers for these interactions are explored as well.

The findings from this research are framed through the following five stages of the customer lifecycle — investigate, initiate, remediate, innovate and cultivate. The report provides valuable insights within each stage of the customer-provider relationship to provide stakeholders with insights to improve customer engagement and satisfaction across all phases of the lifecycle.

Through comparing the performance of utilities with that of organizations in other industries (banks, online retailers, communications providers, etc.), the report helped highlight where utilities do well and where they can improve.

Consumer Driven Technologies

Consumer Driven Technologies is a study that surveyed 1,571 respondents from across the nation that addressed four distinct technologies and services: residential solar, community solar, green power plans and electric vehicles. The report equips interested stakeholders with actionable insight on the consumer producers (or “prosumers”) to help the transition to the future grid.

Through oversampling of adopters of residential solar PV and EV technologies, the study supports in-depth analysis of the motivations, concerns and experience of consumers who have recently made decisions regarding their purchase and use.

By taking a deep dive into the perceptions of early solar and EV users, the Consumer Driven Technologies study is able to provide energy leaders with timely and critical data to help them envision and execute a modernized grid — one that is best able to implement clean, renewable energy for the 21st century.


Customer Engagement Success Stories

The six case studies collected in 2016 by the Smart Grid Consumer Collaborative spotlight how smart grid deployments by utilities have engaged consumers to enable them to match the energy they use with their needs and lifestyles. In every case, the engagement strategies and tactics employed by the utilities have led to behavioral change as customers have actually reduced their electricity bills.

CPS Energy is helping customers increase their energy efficiency through their My Thermostat Rewards Program. Participants agree to allow CPS Energy make adjustments to their thermostats during Conservation Events in exchange for a free Honeywell Programmable Thermostat installed ($300 value) or a one-time $85 bill credit if they opt to install their own unit.

CenterPoint Energy, working with WeatherBug Home’s BYOT Program, offers its customers two free services. They are fine-tuning homeowners’ thermostat schedule every morning based on a 24-hour weather forecast, equating to an average annual savings of $100 per customer. They are also providing homeowners with a monthly report assessing their home HVAC system with targeted tips to make energy-saving improvements.

Snohomish County Public Utility District (SnoPUD) has installed more than 5 MW of clean renewable power since 2009. Through their Solar Express Program, customers looking to install grid connected PV panels on their property receive financial incentives and support.

When Baltimore Gas & Electric Company (BGE) installed smart meters throughout their service area, the company began a journey of increasing customer engagement. That journey has been marked by a coherent strategy that engages customers while it balances demands on support systems within the company.

As Pepco installed smart meters throughout their service area in Maryland, customer engagement and satisfaction were held as central tenants that would influence the success of their programs. Empowering consumers with the tools to manage their energy usage, Pepco offers “two ways to save.”

As part of ARRA, Sacramento Municipal Utility District (SMUD) was awarded funding to participate in the U.S. Department of Energy Consumer Behavior Studies. Through their SmartPricing Options Pilot Program, SMUD tested the effects of dynamic pricing and enabling smart grid technologies on peak load shaving, energy conservation, and customer satisfaction.

Smart Grid Customer Engagement Success Stories © 2016 SMART GRID CONSUMER COLLABORATIVE. ALL RIGHTS RESERVED.

CASE STUDIES 1

My Thermostat Rewards Capturing the Excitement & Holiday Savings BackgroundHeadquartered in San Antonio, Texas CPS Energy is the nation’s largest natural gas and electric municipally owned energy provider, serving more than 786,000 electric and 339,000 natural gas customers across a 1,566 square-mile service area which encompasses parts of eight separate counties. CPS Energy maintains a diversified generation portfolio that supplies their customers with affordable and reliable electricity while maintaining their commitment to environmental stewardship. Working to optimize their grid infrastructure from every angle, CPS Energy is helping customers increase their energy efficiency through their My Thermostat Rewards program. My Thermostat RewardsThrough the My Thermostat Rewards program, CPS Energy enrolls customers with a smart thermostat for a demand response program centered on the cycling of residential central HVAC system. Enrolled participants agree to allow CPS Energy to make adjustments to their thermostat during “conservation events” when CPS Energy’s system reaches peak demand. Conservation events take place during the summer months and typically occur between the hours of 3 p.m. and 7 p.m., Monday through Friday. During conservation events, customers can opt out through their thermostat or smart phone app at any time and return to their normal settings. CPS Energy maintains that conservation events don’t occur very often, but they are crucial in managing the energy needs of their community.Program Nuts & Bolts

All CPS Energy residential customers with central air conditioning or heat pumps are eligible. Customers can elect to receive a free Honeywell programmable thermostat, installed for free by CPS Energy, or customers can elect to buy a qualified device to participate through CPS Energy’s Bring Your Own Thermostat (BYOT) program.

Customers who elect to have CPS Energy install the free Wi-Fi Honeywell programmable thermostat in their home receive a device with a $300 value, as well as the ancillary benefits of smart energy management. Customers who elect the BYOT option receive a one-time bill credit of $85. All participating customers also receive a $30 bill credit at the end of each peak demand season.

CPS Energy My Thermostat Rewards At A Glance Capitalizing on both Black Friday and the approaching holiday season, CPS Energy employed a multi-pronged marketing campaign to increase enrollment in their BYOT (bring your own thermostat) demand response program.

Program Statistics• 1,745 new customers enrolled in just 6 weeks, an 8X increase over the previous year

• Increased total enrollment in their BYOT program by 40%

• 17% of CPS Energy customers are now on a smart thermostat program

Unique for their ability to adopt common

retailing principles to engage consumers,

CPS Energy’s grassroots approach included print, radio, television, digital,

social, in-store, and direct to consumer marketing efforts.


CASE STUDIES 1

WeatherBug Home & CenterPoint Energy

Residential BYOT Demand Response

Background

CenterPoint Energy serves more than 2 million residential customers

throughout Houston and the surrounding areas. To improve the efficiency

of its residential Demand Response (DR) program, CenterPoint Energy

enlisted the help of Earth Networks’ WeatherBug Home platform, which

integrates weather ‘big data’ with connected thermostats and utility meter

data to develop a unique thermodynamic model for each home — which

enables customized control strategies for demand response and energy

efficiency gains.

Combining all of this data, WeatherBug Home more precisely forecasts the

amount of energy needed to heat or cool each residence on any given day,

benefiting CenterPoint Energy’s grid operations by reducing demand dur-

ing hours of peak usage and benefitting consumers by saving them money

without much effort.

The Evolution of Bring Your Own Thermostat (BYOT)

A pay-for-performance BYOT program was appealing to CenterPoint Energy

as it was efficient and cost effective to leverage assets (Wi-Fi thermostats)

already in the field, eliminating much of the administrative costs traditionally

involved in managing residential DR programs.

When WeatherBug Home first launched their BYOT program in 2012,

they were able to deliver .6 megawatts (MW) of estimated DR capacity

to CenterPoint Energy, which grew to 2.83 MW of estimated DR capacity

by the end of 2013. In 2014, WeatherBug Home & CenterPoint Energy

expanded the existing program by bringing in additional energy retailers

and security companies who also managed bases of customers with Wi-Fi

thermostats, delivering an impressive 16.7MW of estimated capacity.

By 2015, the results showed

the BYOT model was proving

to be one of the most cost

effective mechanisms for

delivering residential DR.

In that same year, Honeywell

and Emerson joined the

CenterPoint Energy program,

which enabled WeatherBug

Home to aggregate over

8.9 MW of residential air

conditioning load. On an

WeatherBug Home BYOT

At A Glance

Integrating their forecasting and

modeling capabilities, WeatherBug

Home develops unique energy

profiles for individual homes and

utilizes Wi-Fi connected Smart

Thermostats to sell demand

response capacity to

CenterPoint Energy.

Program Statistics

• CenterPoint Energy is able to

call demand response events

June 1– September 30.

• 2016 expects to have

approximately 10,800 homes

participate in the program.

• On average, each home

participating in the WeatherBug

Home BYOT demand response

program reduced their demand

by 1.76 kilowatts, an estimated

13% efficiency improvement

over a standard demand

response program.


CASE STUDIES 1

Solar Express ProgramThe Snohomish County Public Utility District (SnoPUD) is the second largest

publicly owned utility in Washington, serving more than 333,000 electric

customers throughout a service territory that covers over 2,200 square miles,

including all of Snohomish County and Camano Island. With a commitment

to conservation, SnoPUD has been actively working to find additional clean

sources of electricity to meet the needs of their growing service area. Already

incorporating utility scale wind, biomass, biogas, and both utility scale and

small hydropower projects, SnoPUD also supports customers who want to

take advantage of rooftop solar. SnoPUD’s Solar Express Program offers incentives and support to customers

looking to install grid connected solar photovoltaic (PV) panels on their

property. Through the Solar Express Program, SnoPUD offers cash incentives

for qualifying solar customers and has assisted customers in installing more

than 5 megawatts of clean, renewable power since 2009.BackgroundThe Solar Express Program is available to SnoPUD residential, commercial

and industrial customers for solar installations on their premises. All projects

must be installed by a PUD registered installer, be pre-approved before work

commences and must meet other Solar Express Program specifications. The

incentive is currently $300 per installed KW, up to $2,000 for residential

customers and $8,000 for commercial customers. In exchange for this

incentive, the PUD claims the Renewable Energy Credits (RECs) associated

with all generation from these projects. Consumer Engagement Traditional OutreachIn an effort to inform consumers to the

Solar Express Program, SnoPUD utilized all of the tools at their disposal to appeal to each type of consumer. This includes an active social media campaign, website updates, bill inserts, newsletters, and targeted letters to subsets of their customer base. Installers and word of

mouth among solar enthusiasts has also proved effective. This also includes efforts to educate consumers about how solar energy benefits their community.

SnoPUD’s Solar Express Program At A Glance SnoPUD’s Solar Express Program encourages residents to install grid-connected rooftop solar systems in exchange for a per-kilowatt hour incentive.

Program Highlights• Generated by hundreds of customers, SnoPUD currently has 5 MW of installed rooftop solar capacity.

• Under a state incentive, residential customers are eligible to receive up to 54¢ per kilowatt hour for solar electricity generated and fed back onto the grid.

• All rooftop installations must be completed by a registered Installer to qualify for SnoPUD’s rebate.• SnoPUD has had tremendous success in recruiting customers to the Solar Express Program through varied channels that utilize both traditional and new media

• Solar Express customers qualify for SnoPUD’s net metering rate and may qualify for other state and federal incentives.


CASE STUDIES 1

Coherent Strategy Pays Off

When Baltimore Gas & Electric Company (BGE) installed smart meters

throughout their service area, the company began a journey of increasing

customer engagement. That journey has been marked by a coherent

strategy that engages customers while it balances demands on support

systems within the company. The BGE Smart Energy Rewards® program

was intended for all customers from the outset and as smart meters were

installed, customers were enrolled by default. Three years into the program,

notification unsubscribe rates remain low and customer call backs have

stayed below the program projections of 3%. Each year as more customers

receive their smart meters, customer satisfaction continues to climb and

engagement is on the rise – enough so that BGE can leverage their customers’

own social media stories as an avenue for outreach and promotion.

Background

The BGE Smart Energy Rewards® program was rolled out as part of the

smart meter deployment in Maryland, starting in 2012. As customers received

their smart meters, they were automatically enrolled in BGE Smart Energy

Rewards®, which allows customers to earn bill credits when they reduce

their usage during a peak event. BGE also took a unique approach by linking

together this behavioral demand response program and their direct load

control (DR) program. Customers on BGE’s previously established direct

load control program, PeakRewardsSM, can also participate in BGE Smart

Energy Rewards® on days when events are called. The marriage of these

two programs allows DR customers to add to their flat bill credit when they

conserve further on peak days, a win for BGE and an additional financial

incentive for their DR customers.

The Program Nuts & Bolts

The BGE Smart Energy Rewards® program was designed to encourage

customers to use less electricity when energy demand is high. Managing

summer peak demand helps reduce the need for power generation plants,

helps keep down the overall cost of electricity, and eases the burden on

electricity systems. Customer engagement with the program is done

through awareness and education.

BGE Smart Energy Rewards® differ from many other peak demand

programs because customers are automatically enrolled in the program

upon installation of their smart meter. Scale alone introduced some very

interesting challenges for BGE. Prior to the first summer of the program,

the utility enrolled 315,000 customers, which represented one third of

BGE’s customers, in a new program with new hardware, new data and

new expectations. This heightened the program risk and created concern

across the business about call backs and customer confusion.

BGE Smart Energy Rewards®

At A Glance

Customers are automatically

enrolled in the program when their

smart meter is installed. BGE notifies

them the day ahead when power

consumption is expected to reach

critical levels and customers can

earn bill credits if they reduce their

usage during the event. The day after

the event, BGE notifies customers

how much they saved and the size

of their credit.

Program Statistics

• >1 million residential customers

are currently enrolled

• Up to 89% of residential customers

participated in the events called

during the summer of 2015

• Average bill credit earned per

event, per customer was $6.67

• Call backs to the call center

(complaints & questions) were

<1% the first year and are

continuing to fall even as new

customers receive their smart

meters and are enrolled in the

program


CASE STUDIES 1

Pepco: Two Ways to Save in MarylandAs Pepco installed smart meters throughout their service area in Maryland,

customer engagement and satisfaction were held as central tenants that would

influence the success of their programs. Pepco’s success to date can partially

be credited to a robust customer education and awareness campaign that was

tailored to best fit each of their customer segments. Empowering consumers

with the tools to manage their energy usage, Pepco offers “two ways to save.”Pepco’s Peak Energy Saving Credit allows customers to take an active role

in energy management by reducing electricity use during a set time frame

announced by Pepco while Pepco’s Energy Wise Rewards integrates a smart

thermostat into a customer’s home, providing a hands on way to automatically

cycle air conditioning units and heat pumps during periods of peak demand.Background Peak Energy Savings Credit: All Pepco customers are automatically eligible

for the Peak Energy Savings Credit Program. Only customers who have

opted out of smart meters are not eligible to participate, due to the need

for detailed hourly usage data during the specific time period. Customers

automatically receive a credit when they reduce their electrical usage during

a period of “peak savings” which is typically announced the day before by

Pepco. Customers can choose whether to participate or not on a specific

day, and there is no penalty for not participating.Energy Wise Rewards: At no cost to the customer, Pepco will install a web

programmable thermostat or outdoor switch at the customer’s home and

activate it during peak-use times in exchange for bill credits. During periods

of “peak demand,” Energy Wise Rewards works to reduce electricity usage by

“cycling” central air conditioners or heat pumps off and on during the specific

time period, reducing their energy use.The Program Nuts & BoltsSimilar to other demand response programs, Pepco’s Peak Energy Savings Credit and the Energy Wise Rewards programs are designed to assist cus-tomers in saving money and reduce the strain on the grid when electricity use is expected to approach critical levels. By providing both an active and a passive way to participate, these programs appeal to customer segments in different ways. An online portal allows customers to actively monitor their savings and alter the ways in which they are conserving electricity.

Two Ways to Save At A Glance Servicing parts of Maryland and the District of Columbia, Pepco offers customers “two ways to save” on specifically designated Peak SavingsDays. Pepco’s Peak Energy Savings Credit allows customers to take an active role in energy managementwhile the Energy Wise Rewards Program automatically cycles a customer’s central air conditioning unit and heat pump.

Program Statistics• Approximately 77% of Pepco customers are aware of the Peak Energy Savings Credit Program• 80% of customers learned about the program through direct mail, while 70% were made aware through bill inserts

• Customer aged 65+ preferred to be notified of an upcoming event by phone (60%) while customers aged 18-34 preferred to be noti-fied by text (52%) or e-mail (36%)• Customers reported that saving money on their monthly bill (58%) and helping the environment (25%) we’re the two strongest motivators for participating in the program.

701 Ninth Street N.W.Washington, DC 20068

PEAK ENERGYSAVINGS CREDIT

For more information about how Pepco customers in Maryland

can save on Peak Savings Days, visit pepco.com/peak or call

us at 1-855-730-PEAK (1-855-730-7325).* We calculate your baseline by taking the average energy use of the three highest

weekdays within the past 30 days. This excludes the day prior to a Peak Savings Day,

previous Peak Savings Days, and holidays.

IT’S EASy To SAVE oNPEAK SAVINGS DAYS.Using these simple and hands-on tips, you can make saving money

and energy easy this summer. We’ll notify you the day before a

Peak Savings Day with the hours to reduce your energy use. Here are some helpful tips:

n Shift when you use large appliances to before or after event hours

n Lower blinds and close curtains to keep the sun from warming your home

n Turn off unnecessary lights n Raise your thermostat manually, if health permits, or sign

up for Energy Wise Rewards and make saving automatic. Visit pepco.com/rewards. For every kilowatt hour (kWh) you reduce below your baseline* on

Peak Savings Days, you’ll earn a $1.25 credit off your bill. The

more you reduce your energy use, the more money you can save.


CASE STUDIES 1

Sacramento Municipal Utility District:

SmartPricing Options Pilot Program

For over six decades, the Sacramento Municipal Utility District (SMUD) has

worked to deliver reliable electricity at an affordable rate to more than 1.46

million residents across a 900-square-mile territory that includes California’s

capital city, Sacramento County and a small portion of Placer County. As

part of the American Recovery and Reinvestment Act, SMUD was awarded

a $127M grant from the U.S. Department of Energy (DOE) toward a $308M

smart grid project. Building on this grant, and participating in the DOE

Consumer Behavior Studies, SMUD began the SmartPricing Options Pilot

Program in order to test the effects of dynamic pricing and enabling smart

grid technologies on peak load shaving, energy conservation, and customer

satisfaction. SMUD administered the SmartPricing Options Pilot throughout

the summers of 2012 and 2013. SMUD found that time-of-use rates showed

significant reductions in energy usage during peak load periods resulting in

increased customer savings and continued satisfaction.

Background

Targeting a shift in peak summer demand between 4:00 PM and 7:00 PM June through

September, through the SmartPricing Pilot SMUD offered three separate pricing plans.

• Time of Use Plan (TOU): Participants were charged an on-peak price of $0.27/kWh

between the hours of 4:00 PM and 7:00 PM on weekdays, excluding holidays. For all

other hours, participants were charged $0.085/kWh for the first 700 kWh in each billing

period, with any additional usage billed at $0.166/kWh.

• Critical Peak Pricing (CPP) Plan: Participants were charged a price of $0.75/kWh during

CPP event hours, when temperatures and SMUD’s system loads were expected to be

unusually high. SMUD planned to call 12 CPP events each year, between the hours of

4 PM and 7 PM on weekdays, excluding holidays. Customers were notified 24 hours in

advance of an event day. For all other hours, participants were charged $0.085/kWh for

the first 700 kWh in each billing period, with any

additional usage billed at $0.167/kWh.

• Time of Use-Critical Peak Pricing Rate Plan: The third rate combined the pricing

structures of the TOU and CPP rate options. The TOU-CPP Rate Plan offered an

off-peak electricity rate at $0.072/kWh for the first 700 kWh in each billing period,

with any additional off-peak usage billed at $0.141/kWh. Participants are charged

an on-peak price of $0.27/kWh between the hours of 4 PM and 7 PM on weekdays,

excluding holidays. A CPP price of $0.75/kWh is charged to participants between the

hours of 4 PM and 7 PM on CPP event days, of which SMUD planned to be called 12

times during the summer months. Those 12 days were the same as those called for

the CPP-only rate. The TOU-CPP rate was not offered on an opt-in basis.

FACT: When given the opportunity to choose, SMUD discovered that customers favored the TOU plan over the CPP plan

by a factor of 2:1, exhibiting a mentality that chooses to limit financial risk.

SmartPricing Options Pilot

Program At A Glance

In order to test the effects of dynamic pricing

and enabling smart grid technologies on

peak load shaving, energy conservation, and

customer satisfaction, SMUD administered

the SmartPricing Options Pilot Program

throughout the summers of 2012 and 2013.

Through three dynamic rate plans – standard

TOU, Critical Peak Pricing, & a Combination

of Critical Peak Pricing & TOU – the goal of

the SmartPricing Options Pilot Program was

to reduce peak demand from 4 PM – 7PM.

Program Statistics

• Approximately 12,000 residents

participated in the SmartPricing

Options Pilot Program

• Dynamic pricing showed load reductions

of up to 25% during hours of peak demand

• Following the SmartPricing Options Pilot

Program, more than 95% of participants

reported that they were satisfied with the

new pricing plans.

RESOURCE LIBRARYEnsuring that our members are always the first to know about new trends in consumer engagement, SGCC routinely updates and adds new resources to the SGCC Resource Library.

Lifting the High Energy Burden in America’s Largest Cities: How Energy Efficiency Can Improve Low Income and Underserved Communities

Ariel Drehobl and Lauren Ross

APRIL 2016

aceee.org

0000

GOT DATA? The Value of Energy Data Access to Consumers

JANUARY 2016


SGCC’S MEMBERSHIP BASE STANDS AT 125 MEMBERS

Accenture

ACEEE

Aclara

AEP

AEP Energy

Allconnect

Alliance to Save Energy

Alston & Bird

Ameren Illinois

American Municipal Power

Arizona Public Service Company

Avista Utilities

Bidgely

Brookhaven National Laboratory

California Public Utilities Commission

CenterPoint Energy

Citizens’ Utility Board of Oregon

CLP Power Hong Kong Limited

Colorado Public Utilities Commission

ComEd

Commonwealth of Massachusetts DPU

Comverge

Con Edison

Deloitte

Direct Energy

DNV GL

Duke Energy

Duquesne Light Company

ElectriCities NC

Electric Power Research Institute

Elevate Energy

Energate

Energetics

Entergy

Environmental Defense Fund

FirstEnergy Corporation

Future of Privacy Forum

GE Grid Solutions

Georgia Institute for Technology

Georgia Watch

Green Button Alliance

GridWise Alliance

Groundwork San Diego

Illinois Citizens Utility Board

Illinois Science & Energy Innovation Foundation

Itron

Landis+Gyr

Lawrence Berkeley National Laboratory

MeterGenius

Michigan Public Service Commission


National Institute of Standards and Technology

National Renewable Energy Laboratory

Natural Resources Defense Council

NETL – Smart Grid Implementation Task Force

New Brunswick Power Corporation

New Hampshire Office of the Consumer Advocate

North Carolina State University

North Carolina Sustainable Energy Association

North Carolina Utilities Commission Public Staff

Office of People’s Counsel DC

Office of the Ohio Consumers’ Counsel

Ohio Partners for Affordable Energy

Oklahoma Gas & Electric

Pacific Gas and Electric Company

Pacific Northwest National Laboratory

PayGo

Peak Load Management Alliance

Pecan Street Project

PECO

Pepco Holdings, Inc.

Public Service Company of New Mexico

Public Service Enterprise Group

Public Utilities Commission of Ohio

Public Utility Commission of Texas

Purdue University

Research Into Action

Silver Spring Networks

Smart Electric Power Alliance

Smart Grid Northwest

Smart Utility Systems

Southeast Energy Efficiency Alliance

Southern California Edison

Southern Company

Southface Energy Institute

Southwest Energy Efficiency Project

Southwest Research Institute

State of Connecticut Office of Consumer Counsel

Tendril

Texas Office of Public Utility Counsel

The Greenlining Institute

The Energy Authority

The Nature Conservancy

Twenty First Century Utilities

University of Southern California

Utility Consumers’ Action Network

Vermont Energy Investment Corporation

WeatherBug Home

Westar Energy

Xcel Energy

MUNICIPALS/CO-OPS

Alameda Municipal Power

Austin Energy

Benton PUD

Choptank Electric Coop

Chugach Electric Association

City of Fort Collins

City of Ukiah EUD

City Utilities of Springfield

Colorado Springs Utilities

Columbia Water and Light Department

CPS Energy

Electric Power Board of Chattanooga

Eugene Water & Electric Board

Fayetteville Public Works Commission

Gainesville Regional Utilities

Great River Energy

Idaho Falls Power

Memphis Light, Gas and Water

Middle Tennessee EMC

Mid-Carolina Electric Cooperative

Riverside Public Utilities

Snohomish PUD

Southern Maryland Electric Cooperative

Tri-County Electric Cooperative

Wilson Energy


MEMBERSHIP UPDATE

NEXT INNOVATION VIDEO

First, there was the wheel. Then, the rotary phone. Now, the smart grid to bring electricity delivery into the 21st century.

With the release of the Next Innovation Video in October, Smart Grid Consumer Collaborative sought to educate and excite consumers about the benefits of modern-day advancements being made to the electric grid. The video puts into perspective what a monumental time this is in the history of human innovation by displaying a timeline of the inventions that led up to it.

Created by Pacific Media for SGCC, the multimedia production includes colorful and eye-popping animation to show how the smart grid is revolutionizing the way we live. The video begins with a caveman inventing the wheel and helps the viewer see the progress of energy use from fire to coal and steam. It ends with current energy innovation with renewables and connected high-speed communications.

CLEAR AWARDS

At the 2016 Consumer Symposium, SGCC recognized DTE Energy, Smart Utility Systems and Elevate Energy as the 2016 CLEAR Award winners. Recipients of the CLEAR Awards demonstrate excellence in customer engagement and outreach in their consumer awareness campaigns.

DTE Energy

Smart Utility Systems

Elevate Energy

During the four-minute presentation, viewers discover many consumer benefits of smart grid, including more choice, control and savings. They learn how smart grid is helping utility companies restore power outages more quickly and see how a smarter grid is a cleaner grid by making clean energy sources like electric vehicles, wind and solar accessible and scalable.

The video was shared by many SGCC members and viewed by thousands of consumers on YouTube and Facebook.

SMART CITIES FACT SHEET

With the release of this fact sheet, SGCC provided consumers with a jargon-free educational resource defines the smart city and illustrates clearly the connection between the smart city and the smart grid.

“ Nearly 80% of Americans

already live in urban areas. ”

— U.S. Census Bureau

Smart Cities: We’re All In This Together

Creating livable, sustainable cities is a major challenge of the 21st century as an increasing amount of the world’s population resides in urban areas. According to the United Nations, currently half of the world’s population lives in cities. By 2050, the UN projects, two-thirds of the world’s 9.7 billion people will dwell in cities.

Consider the benefits already being realized by various cities pursuing different smart city improvements:

• Providing universal internet access, saving citizens money. New York’s LinkNYC program is transforming 7,500 former payphones into communication hubs offering free gigabit-speed Wi-Fi for internet access, phone charging and national calls, paid for by advertising.

• Creating better-paying, skilled jobs by implementing smart technologies. Chattanooga modernized its grid, reduced power outages and offered its citizens high-speed internet service. A university study showed these improvements created at least 2,800 new jobs, attracted new businesses and provided an $865.3 million boost to the local economy.

• Streamlining city services for quality of life and economic growth. San Jose is using air, sound and climate sensors to feed an internet-based platform. It focuses on improvements to public safety, transportation, public health, energy use and economic growth. The city is sharing best practices and lessons learned with other cities.

• Reducing urban impacts on the environment. Boston’s solar-powered benches enable citizens to charge their cell phones in public. They also provide local environmental data that is used to improve Boston’s livability.

• Improving public transportation to aid efficient mobility and reduce traffic. Cities are integrating intelligent transportation management software and roadway sensors that monitor freeway conditions and can re-route public transit when necessary. New transportation apps are being developed for trip-planning, navigation and smart parking. Trip-planning apps enable users to find the quickest route to get where they’re going on public transit. Navigation apps display real-time traffic and point drivers to less congested routes. Smart parking apps help drivers find open spots, reducing time spent circling downtown blocks.

What is a “smart city”?

A “smart city” is a city that harnesses digital technology and intelligent design to create a sustainable city. Services like power or public safety are seamless, efficient and provide for a high quality of life for citizens. A smart city does this by collecting data from places like street lights, building sensors and from citizens in their interactions with city services. It would share operational data across city agencies to reduce costs and improve efficiencies. Finally, it would communicate that data to city analysts to make city services more efficient and responsive to citizens’ needs. The goal is to improve the quality of life for city residents and streamline city operations.


EDUCATION AND OUTREACH COMMITTEE SUCCESSES

SGCC’s Policy Committee is comprised of members from across the smart energy industry who are well versed in the regulatory affairs of the energy industry.

In 2016, SGCC made great strides to engage more with public policy stakeholders. SGCC staff has shared primary consumer research with commissioners and staff across the country through workshops, webinars and public forums. The goal of these research presentations is to facilitate a dialogue with the end result of increasing support and investment in smart energy technologies where beneficial to consumers.

It is important to note that SGCC will not engage in advocacy of any kind. Rather, efforts are meant to ensure that SGCC research informs policymakers and regulators at the most helpful possible point in decision-making affecting consumers.

How Are The Program Expenses Allocated?

Where Does Your Money Go?

Fundraising Expenses

10%

Administrative Expenses

15%

Program Expenses75% Collaboration

32%

Education22%

Research45%

Listed below are the presentations and workshops where SGCC’s consumer research was shared in 2016:

Illinois Commerce Commission

National Association of Regulatory Utility Commissioners (NARUC) Electricity Committee


National Association of State Energy Officials (NASEO)

Northwest Power and Conservation Council

New England Conference of Public Utility Commissioners (NECPUC)

Georgia Public Service Commission

In 2017, SGCC will continue to share its consumer research with policy stakeholders at the following forums (and others to be announced):

Michigan Public Service Commission

Public Utilities Commission of Hawaii

BY THE NUMBERS


OUR POLICY WORK

Over 100+ key decision makers in attendance

Unique industry reach: utilities, consumer advocates, industry media, technology providers and research groups

More than 50 percent of attendees are director level and above

2016 CONSUMER SYMPOSIUM

With over 100 attendees present for the sixth annual event, members participated in an inter-active Snake Pit session, engaged with thought leaders and industry experts and shared insights with peers at power networking opportunities.

2016 MEMBERS MEETING

The annual two-day meeting was hosted by ComEd and was attended by more than 85 SGCC Members. A highlight of the event included an opportunity for members to tour the Smart Energy Hub at the ComEd Chicago Training Center. The meeting focused on gaining alignment around the consumer value proposition for the smart grid.

2016

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

CONFERENCE APPEARANCES

To continue to build awareness and momentum around SGCC’s consumer research, educate attendees on the latest consumer findings and make contacts with membership prospects, in 2016, SGCC presented at 27 conferences and workshops across the country.

A few of the top-tier energy conferences where SGCC was represented were:

DistribuTECH

2016 Smart Energy Summit

EPRI Advisory Meeting

Zpryme’s Energy Thought Summit

ARPA-E Energy Innovation Summit

Smart Cities Policy Session

Customer Engagement Strategies Workshop Hosted by CPS

SEPA 51st State Initiative

17th PLMA Spring Conference

Landis+Gyr Exchange

Minnesota Public Policy Workshop

DOE Grid Modernization Summit

Grid Edge World Forum

Municipal Smart Grid Summit

National Town Meeting on Demand Response and Smart Grid

Smart Cities Week

The Smart Grid Customer Education Symposium

Comverge Demand Innovation Conference

Utility Analytics Week

Rural Smart Grid Summit

PLMA Conference

NARUC Annual Meeting

AUDIENCE PROFILE FOR SGCC EVENTS


SGCC EVENTS

Time-Varying Rates

Utilities can make solar, EV adoption easier for interested customers

SGCC publishes 3 new smart grid case studies

Public power utilities set example for smart grid implementation

Smart Grid Consumer Collaborative: The Empowered Consumer

Utility Customers Love Money as an Incentive (and it won’t cost you as much as you think)

Consumer Awareness for Smart Energy Services and Technologies at an All-Time High

Survey indicates strong interest in smart thermostats, time-of-use rates

U.S. consumers highly knowledgeable on smart energy tech – survey

SGCC: Research finds consumers ready for change

What do today’s consumers really want from the smart grid?

Top 5 Things Consumers Want From Their Energy Providers

Irvine’s Smart Utility Systems Wins Industry Award

DTE wins Customer Excellence Award

Plugging in: Phoenix ranked among friendliest cities for electric vehicles

Report: Customer engagement for utilities still elusive

Here’s What American Consumers Think About the Smart Grid in 2016

SGCC works tirelessly to position itself as a thought leader within the smart energy industry and works to ensure that its research and findings are utilized by the community at large.

MEDIA HIGHLIGHTS FROM 2016:

COMMUNICATIONS UPDATE


WEBSITE GROWTH

Since it first launched in 2013, SGCC’s consumer-oriented website, whatissmartgrid.org, has been visited by more than 131,000 consumers wanting to learn more about smart grid technologies. In 2016 alone, the website saw over 68,000 users.

SOCIAL MEDIA GROWTH

SGCC’s social media presence has expanded significantly, with growth across all platforms and increased engagement with consumers. Each social channel supports SGCC’s promotion of smart grid consumer research and educational materials.

A DIGITAL OUTLOOK

WhatIsSmartGrid.org CONSUMER CHANNELS

-1%

4934 Members

+11%

95,461 Views

+29%

927 Followers

Smartgridcc.org INDUSTRY CHANNELS

+10%

333 Members

+21%

7,293 Followers

+37%

25,935 Views

PEER CONNECT, THOUGHT LEADERSHIP AND RESEARCH BRIEF WEBINARS

SGCC continued to hold thought leadership webinars to provide a friendly forum to hold discourse around topics selected by members. In 2016, SGCC conducted 11 webinars, reaching 573 industry stakeholders.


Since its founding in March 2010, Smart Grid Consumer Collaborative has laid the groundwork for partnerships and set the stage for a consumer-safe, consumer-friendly and consumer-approved modern electric grid in the U.S.

EDUCATION & OUTREACH

In 2017, SGCC will continue to grow consumer awareness about grid modernization and its associated consumer benefits. In Q1, SGCC will release the updated Consumer Value Proposition, a consistent narrative on the promise of the smart grid to the industry and consumers, as well as present its 2017 CLEAR Awards at the Consumer Symposium.

SGCC will lead an initiative in the spring and summer to raise awareness on the benefits of grid modernization through member support of the Consumer Value Proposition messaging and a media campaign in both trade and national outlets.

SGCC will also release an interactive resource map that will define the Internet of Things for media and consumers, produce a consumer education best practices guide and continue to develop its digital tools on whatissmartgrid.org.

RESEARCH

Throughout 2017, SGCC will release new research that explores a variety of topics across the smart energy industry.

In January, SGCC will publish the 2017 State of the Consumer Report. Drawing heavily from 2016’s The Empowered Consumer and Consumer Driven Technologies research, the 2017 State of the Consumer Report will discuss how to effectively engage consumers through smart grid-enabled programs and technologies.

In Q2, SGCC will release the sixth wave of SGCC’s flagship Pulse series of nationally representative consumer telephone surveys. Pulse Wave 6 will update SGCC’s groundbreaking consumer smart grid segmentation framework, focusing on presenting this information in a way that is actionable by members. This survey will also track the progress that industry stakeholders are making in building awareness and favorability of the smart grid.

The second quarter will also feature the Spotlight on Millennials. Because this group, soon to be one of the largest groups of energy consumers, often exhibits different expectations, attitudes and behaviors from prior generations, this research will help build the foundation for understanding this group of consumers. SGCC will examine expectations, values and how these consumers would like to engage in energy management.

Later in the year, SGCC will publish Consumer Platform of the Future, SMB and Non-Residential Customers and Renters’ Consumer Pulse — a deep dive into the preferences and motivators that drive renter interest and adoption, contrasting these with home owners given similar opportunities.

RESEARCH, EDUCATION AND OUTREACH OVERVIEW


THE VALUE OF MEMBERSHIP

Working for a consumer-friendly, consumer-safe smart grid

SGCC’s mission is to serve as a trusted source of information for industry stakeholders seeking a broad understanding of consumers’ views about grid modernization, electricity delivery and energy usage, and for consumers seeking an understanding of the value and experience of a modern grid.

Join @ www.smartgridcc.org

© 2017 Smart Grid Consumer Collaborative. All rights reserved.

beyond the grid: the connected consumer and the...

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